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Projected ticket sales mid-way through the season are off more than $200,000, leading some city officials to urge cost cuts or even privatization at the public ski area. The mountain's deficit for next year is expected to top $500,000, though Eaglecrest officials last week presented a business plan they hope will cut into the losses thereafter.

Juneau Assembly member Jim Powell implored ski officials to use volunteers and in-kind services as much as possible to save money.

The business plan would turn the winter recreational site in Douglas into a year-round facility. The ski area would generate more income from summer-related activities and services such as dog sled tours, a walkway through tree tops, cabin rentals and food sales.

In the short term, however, Eaglecrest must overcome a $509,800 deficit incurred from past bad winters, along with possible shortfalls this season.

Eaglecrest's biggest financial hurdle is in fiscal year 2005, when a $515,500 deficit is projected, according to the business plan. Fiscal year 2005 starts July 1, 2004.

Afterward, budget projections show a reduced deficit of $259,300 in fiscal 2008 because of year-round revenue.

Business Manager Gary Mendivil cautioned that the projected $515,500 deficit could change. Ski officials do not know how much revenue they will generate this season until it is over in late March, he said. That number will dictate how much funding ski officials will seek from the Assembly.

Eaglecrest may raise prices next year, the business plan says. Lift ticket prices, which range from $5 to $26 daily, could go up $2 to $3 across the board. The cost of season passes, individual and family season lockers, and classes at the ski and snowboard school also may rise. The fee to ride an Eaglecrest bus may jump to $5 each way from the current $3.

The outlook for this season shows Eaglecrest reaching 88 percent to 95 percent of its budgeted revenue, the business plan says. The budget was based on a survey performed by the Juneau consulting firm The McDowell Group in the spring of 2003. Eaglecrest hoped that by reducing season pass prices, more skiers would accept the risk of a poor season.

"While we sold a substantial number of new season passes, it appears that some customers still felt that there was a risk of a poor winter season," according to the report.

Eaglecrest projected $592,400 in season pass sales after it discounted tickets, Mendivil said. So far, it has collected $406,303 mid-way through the ski season. Daily lift ticket sales are at $149,300; officials budgeted for $189,600.

Eaglecrest did a healthy business in late December and early January, but one rainy three-day weekend followed by extreme cold for two weeks took its toll on January skiing, the report says.

Skier Charlie Williams said he can handle the cold but won't come out when it's rainy or warm.

"It's like any sport. You don't go fishing with high waves," said Williams, who has been skiing at Eaglecrest on and off for about 15 years.

The city should help pay for Eaglecrest, Williams said, because skiers create a financial domino effect for the community.

Snowboarders Josh Church and Ryan Elliott said this is one of the best seasons at Eaglecrest for snow conditions. Church, who has been there 40 times this season, simply dresses for the weather regardless of rain or temperature, he said.

Eaglecrest suffered its worst financial year in fiscal 2003, when it was open only about half the season. Ski officials asked the Assembly for $240,000 that year to help reduce the deficit. City leaders rejected the request and told ski officials to create a long-term business plan.

On Wednesday, Assembly members said they appreciated ski officials' business plan, but asked them to do more work. The Assembly made no funding commitments because it needs to put Eaglecrest's plan in the context of the full city budget, which faces a $2 million deficit, members said.

In fiscal 2005, Eaglecrest likely would receive the $363,100 that the city traditionally has allocated, although no guarantees exist, Assembly member Powell said Friday.

City Manager Rod Swope is expected to present his budget to the Assembly on April 5. The Assembly has until June 15 to adopt a spending plan.

Finance Committee Chairwoman Jeannie Johnson said the Assembly faces a "tough fiscal year," and added that when it gives funding to one group it has to take away from another.

Ski officials should revisit privatizing Juneau's only ski area, Assembly member Randy Wanamaker said. He also suggested more Eaglecrest officials work part time.

Only seven of Eaglecrest's 110 employees are full-time, Mendivil said. Further, the city Lands and Resources Department solicited bids in the 1980s for a private company to purchase the ski facility and got no responses, he said.

The number of ski areas operating in the United States has decreased from 735 in 1983 to 490 in 2003, according to the business plan. Some reasons include an inhospitable business climate, demographic changes and the costs of providing expected improvements to facilities.

Williams suggested Eaglecrest explore building a chair lift in what is called the "east bowl" area to the left of the upper chair lift, where snow remains consistent because of high altitude.

Ski Area Manager Paul Swanson said building that chair lift is a long-term consideration but officials want to focus first on the mountain base, where facilities already exist.

No city recreational facility pays for itself and Eaglecrest should not be expected to, Powell said. To compare, the city gave $430,000 to the Augustus Brown Swimming Pool and $300,00 to the Zach Gordon Youth Center in the fiscal 2004 budget.

• Tara Sidor can be reached at tara.sidor@juneauempire.com.